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Business Ownership & Entrepreneurship - Final Review #5

Total questions: 22

Worksheet time: 8mins

Name
Class
Date
1.

Things that you own are referred to as your

a)

liabilities

b)

assets

c)

equity

d)

net worth

2.

An attractive layout is probably most important for a(n)

a)

on-site service business

b)

warehouse

c)

retail business

d)

manufacturing business

3.

Most businesses need all of the following types of supplies and equipment except

a)

furniture

b)

office supplies

c)

heavy machinery

d)

fixtures

4.

For this type of business, inventory consists of the parts that will go into producing the business's product as well as its finished goods.

a)

retail business

b)

on-site service business

c)

manufacturing business

d)

all of these

5.

What does debt-to-equity measure?

a)

the difference between your assets and your liabilities

b)

the relation between your startup costs and your net worth

c)

the relation between the dollars you have borrowed and the dollars you have invested in your business

d)

the difference between your equity and your liabilities

6.

Loans that are backed by collateral are called

a)

secured loans

b)

unsecured loans

c)

business loans

d)

short-term loans

7.

What is a line of credit?

a)

money a bank invests in a business in return for a share in the profits

b)

an agreement by a bank to lend up to a certain amount of money whenever the borrower needs it

c)

a grant provided by the Dept of Housing and Urban Development to encourage business development in needy areas

d)

a short-term loan offered to new entrepreneurs that must be repaid within a year

8.

Which of the following financial statements best shows how much money you have available to pay your bills?

a)

balance sheet

b)

income statement

c)

cash flow statement

d)

pro forma financial statement

9.

An income statement can help a business owner do all of the following except:

a)

examine how sales, expenses, and income are changing over time

b)

identify his/her equity in the business

c)

analyze costs to determine areas that need to be cut back

d)

forecast how well the business can expect to perform in the future

10.

The difference between revenue and cost of goods sold is

a)

gross profit

b)

cost of goods sold

c)

operating expenses

d)

net income before taxes

11.

Which of the following is an example of a current asset?

a)

a warehouse

b)

a mortgage

c)

an accounts payable

d)

inventory

12.

Cash sales and cash payments received from customers on their credit accounts are recorded in the

a)

purchases journal

b)

cash receipts journal

c)

subsidiary ledger

d)

aging table

13.

A list of people who receive salary or wage payments from a business is called a(n)

a)

payroll

b)

account

c)

aging table

d)

pension

14.

A specific work activity an employee performs is called a

a)

job

b)

task

c)

human resource

d)

function

15.

The chain of command shows

a)

who has been working at the company the longest

b)

the physical layout of a store or business

c)

who reports to whom in the company

d)

the salaries of all company employees

16.

All of the following are resources an entrepreneur can use for recruiting except

a)

in-store advertising

b)

classified advertising

c)

employment agencies

d)

all of these can be used a recruiting resources

17.

Students who work for little or no pay in order to gain experience in a particular field are called

a)

interns

b)

temporary employees

c)

freelancers

d)

contractors

18.

A small business owner should do all of the following when interviewing potential employees except

a)

explain the atmosphere in which the job applicant will work

b)

avoid ruling out a job applicant until the interview is over

c)

refuse to allow the job applicant to ask questions--you are the one doing the questioning

d)

talk about the significance of working at a new business

19.

An amount paid for a job position stated on an annual basis is called a

a)

bonus

b)

commission

c)

wage

d)

salary

20.

This law was passed to promote the employment of people over the age of 40 based on their ability rather than their age.

a)

Fair Labor Standards Act of 1938

b)

Age Discrimination in Employment Act of 1967

c)

Americans with Disabilities Act of 1990

d)

Civil Rights Act of 1964

21.

Which managers work directly with the employees who perform the day-to-day tasks of a business?

a)

middle managers

b)

top management

c)

supervisors

d)

all of these work with day-to-day employees

22.

In this type of job training, employees receive regular feedback and instruction from their manager.

a)

coaching

b)

on-the-job training

c)

shadowing

d)

mentoring